FRESNOFORECLOSURE

Global travel demand remains robust heading into Spring 2025, but travellers are navigating a complex landscape shaped by economic pressures, evolving expectations, and geopolitical uncertainty.

The Spring 2025 Travel Pulse report by commerce media company Criteo–drawing on data from hundreds of online travel agencies, airlines, hotels, and consumer insights– reveals key shifts in behaviour, budgets, and booking trends.

Despite these challenges, travel bookings globally outpaced retail sales, indicating strong seasonal demand. This trend was particularly pronounced in EMEA (Europe, the Middle East and Africa) and the Americas.

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However, Asia Pacific travel also left retail behind from July to October, with bookings outperforming retail sales by more than 12 index points during this period.

Key trends and data points:

Shifting traveller mindset: Travellers choose adventure over routine, opting to ‘switch it up’ from long flights to campsites. They are planning smarter, browsing for longer, and increasingly turning to AI for advice, prioritising booking “right” overbooking fast.

In late March 2025, air travel bookings took nine days on average from first search to purchase, while hotel bookings took 12 days. The path to booking a hotel stay is particularly competitive, with travellers viewing five times more hotel options than flights.

Value and flexibility reign: Travellers still desire distance but are sensitive to price. They are making trade-offs to find savings without sacrificing the experience. Offering flexibility, perks, and a sense of value is crucial for securing bookings and fostering repeat business.

Common cost-saving tactics include booking far in advance (42 per cent globally), travelling during off-peak seasons (38 per cent), and choosing less expensive destinations (37 per cent).

APAC and OTA growth: In Q1 2025, online travel agencies (OTAs) led global year-over-year growth. Performance remained particularly strong in APAC across categories, including air and hotel bookings, which saw slower growth in other regions. The Americas led OTA growth at +19 per cent.

Long-haul on the rise: Long-haul flights (greater than 2,500 nautical miles) are gaining popularity, up 7 per cent year-over-year in the Americas and 3 per cent in both APAC and EMEA. Marketers are advised to promote ‘dream destinations’ and upsell premium offerings.

Ground travel gains traction: While air travel still leads globally (54 per cent), ground travel is gaining speed. In Japan, trains are now the top transportation choice (51 per cent), surpassing planes (42 per cent). Car rentals are also seeing increased traction in the US (34 per cent). Personal vehicle use is declining globally, down 4 points.

Accommodation diversity: Hotels remain the leading accommodation choice (70 per cent globally), but travellers are exploring housing rentals (27 per cent), personal accommodation (26 per cent), and camping (14 per cent). This branching out is noted particularly among experience-seeking segments.

Booking windows vary: Travellers planning longer stays (15+ days) book significantly earlier, nearly 100 days in advance, which is five times earlier than those booking shorter trips.

Regional booking habits differ; Europeans book well in advance, US travellers are more last-minute, while Japan and South Korea favour booking about a month out. Only 26 per cent of US travellers booked 2+ months ahead in Q1 2025, down from 33 per cent in Q1 2024, indicating a shift towards more spontaneous travel in the US. APAC habits remained steady.

Generational transportation preferences: Millennials and Gen Z are more likely to choose planes and trains, while Boomers and Gen X still prefer driving, with personal vehicles second only to air travel for these groups.

AI’s growing role: Use of AI for planning travel activities, sightseeing, and full itineraries is growing, reflecting rising trust in AI for inspiration. Globally, 41 per cent find AI useful for activities/sightseeing, 41 per cent for destination ideas, and 40 per cent for accommodation suggestions. Japan sees particularly high use of AI for holistic/full trip planning (47 per cent) and destination ideas (49 per cent).

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Importance of reviews and loyalty: Good reviews are the top factor globally when comparing travel providers (64 per cent), followed by free cancellation (52 per cent) and special offers (47 per cent). Loyalty programmes also influence decisions, especially in the US (41 per cent) and UK (30 per cent). Consistency in service and pricing are key reasons travellers return to the same provider.

Geopolitics on the radar: While only 26 per cent of travellers globally actively track geopolitics for travel planning, it is the fastest-growing concern, up 12 points year-over-year. South Korea saw a notable increase of +24 percentage points in travellers who factor geopolitical matters into their plans.

APAC inspiration sources: Family and friends are the top source of inspiration globally (55 per cent). However, media preferences vary; South Korea and Japan favour blogs (South Korea 50 per cent) and print publications (Japan 32 per cent), while the UK and US lean towards peer advice and digital media like podcasts. Travel booking sites are a significant inspiration source globally (44 per cent).

Eco-conscious travel: 15 per cent of European travellers actively try to lower their carbon footprint, rising to 28 per cent among those who identify as eco-conscious shoppers.

Experiential travel: Tourist attractions are a top priority (59 per cent), but shopping (45 per cent), nature activities (43 per cent), and food/wine tours (36 per cent) are also highly desired. Notably, 60 per cent of international travellers from APAC and 55 per cent from the US prioritise food-related attractions.

Affluent traveller spending: Affluent travellers show increased purchase likelihood across various categories while travelling. In APAC, they are significantly more likely to buy makeup (+102 per cent) and perfume (+113 per cent) compared to average travellers. The Americas and EMEA also see lifts in categories like handbags and fragrance.

Mixed financial outlook: Only 23 per cent of travellers globally report an improved financial situation compared to a year ago. However, the majority (two-thirds globally) either maintained or increased their travel spend in the last 6 months compared to the previous year. Optimism for future finances is highest in the US and UK, and lowest in Japan.

Average booking value shifts: Q1 2025 saw average booking values surge for car rentals, hotels, and OTAs. APAC hotels saw standout gains (+23 per cent). In contrast, air travel average booking values dropped across all regions.

The report underscores that travel remains an essential part of many lifestyles (half of travellers globally consider it essential). Despite rising costs, two-thirds of travellers globally maintained or increased their travel spend in the last six months.

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Navigating this environment requires marketers and travel platforms to be agile, focus on value and flexibility, leverage data and AI for personalisation, and tailor strategies to regional and generational preferences. The trend towards longer browsing windows and the increasing use of AI in planning mean staying visible across the entire booking journey is more important than ever.

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The image was generated using Grok.

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